Rescuers end effort to find body of man presumed dead in sinkhole

SEFFNER, Florida -- Florida rescue workers have ended their efforts to recover the body of a man who disappeared into a sinkhole that swallowed his bedroom while he slept in a suburban Tampa home, and the house will be demolished, a public safety official said on Saturday.

Jeff Bush, 36, who is presumed dead, was asleep when the other five members of the household who were getting ready for bed on Thursday night heard a loud crash and Jeff screaming.

Authorities have not detected any signs of life after lowering listening devices and cameras into the hole.

"Our data has come back, and there is absolutely no way we can do any kind of recovery without endangering lives of workers," said Hillsborough County Fire Rescue spokeswoman Jessica Dam.

The sinkhole also has compromised the house next door, officials said Saturday.

Officials planned to let family members, accompanied by firefighters, into the threatened  home for about 20 minutes to gather some  belongings, Hillsborough County Fire Rescue spokesman Ronnie Rivera told reporters Saturday.

She said demolition of the home would begin early on Sunday.

Bush's body hadn’t been removed by Saturday afternoon and the ground near the home was still "very, very unsafe," Rivera said at a televised press conference Saturday.

"At this time we did some testing and we determined that the house right next to the house that’s actually damaged is also compromised by the sinkhole," Rivera said.

Jeff's brother, 35-year-old Jeremy Bush, jumped into the hole and furiously kept digging to find his brother.

"I really don't think they are going to be able to find him," Jeremy said on Saturday. He "will be there forever."

A small memorial of balloons and flowers for his brother had formed near the house on Saturday morning.

"I thank the Lord for not taking my daughter and the rest of my family," he said.

Jeremy himself had to be rescued from the sinkhole by the first responder to the emergency call, Douglas Duvall of the Hillsborough County Sheriff's Office. When Duvall entered Jeff Bush's bedroom, all he saw was a widening chasm but no sign of Jeff.

"The hole took the entire bedroom," said Duvall. "You could see the bed frame, the dresser, everything was sinking," he said.

Norman Wicker, 48, the father of Jeremy's fiancee who also lived in the house, ran to get a flashlight and shovel.

"It sounded like a car ran into the back of the house," Wicker said.

"There is a very large, very fluid mass underneath this house rendering the entire house and the entire lot dangerous and unsafe," Bill Bracken, the head of an engineering company assisting fire and rescue officials, told the news conference late on Friday.

"We are still trying to determine the extent and nature of what's down there so we can best determine how to approach it and how to extricate," Bracken said.

After suspending the search overnight, it resumed at daylight on Saturday, with engineering consultants trying to determine the extent of the collapse so that a perimeter boundary can be established for setting up heavy equipment for future excavation.

Several nearby homes were evacuated in case the 30-foot wide sinkhole got larger but officials said Friday it only appeared to be getting deeper. Soil samples showed that the sinkhole has compromised the ground underneath a home next door, engineers said Saturday.

The residents of that house were allowed 20 minutes in their home on Saturday to gather belongings. Firefighters and residents formed an assembly line to move items out of the house into SUVs and trucks.

Rescue officials said that in addition to soil samples, they were focusing on engineering analysis, ground penetration radar and other techniques to determine the extent of the ongoing collapse. Listening devices were being used to detect any evidence of life although Bush was presumed dead.

The Bush brothers worked together as landscapers, according to Leland Wicker, 48, one of the other residents of the house.

The risk of sinkholes is common in Florida due to the state's porous geological bedrock, according to the Florida Department of Environmental Protection. As rainwater filters down into the ground, it dissolves the rock, causing erosion that can lead to underground caverns, which cause sinkholes when they collapse.

Reuters

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Judge cuts Apple award versus Samsung, sets new damages trial

(Reuters) - Apple Inc had a major setback in its mobile patents battle with Samsung Electronics on Friday, as a federal judge slashed a $1.05 billion jury award by more than 40 percent and set a new trial to determine damages.

Apple won the award last year against Samsung in what was the biggest and highest-profile of a number of legal trials around the world, centered on the use and alleged abuse of patents in a highly competitive mobile market.

The iPhone maker convinced the jury that the Korean company, which in 2012 overtook Apple as the global smartphone leader, had infringed on its iPhone and iPad patents.

"We are pleased that the court decided to strike $450,514,650 from the jury's award," the Korean company said in a statement. "Samsung intends to seek further review as to the remaining award."

Apple declined to comment.

Friday's ruling by Judge Lucy Koh of the U.S. District Court Northern District of California in San Jose means the two mobile electronics companies may once again square off in a California court to decide how much of the $450.5 million struck from the damages, associated with 14 Samsung products, should stand.

Koh said the jury had incorrectly calculated part of the damages and that a new trial was needed to determine the actual, final dollar amount. That could end up less than or more than the original $450.5 million set by the jury.

Koh, rejecting Apple's motion for an increase in the jury's damages award, ordered a new trial on damages for the 14 devices, which include the Galaxy SII. The jury's award to Apple for 14 other separate products, totaling almost $599 million, was maintained.

"The court has identified an impermissible legal theory on which the jury based its award and cannot reasonably calculate the amount of excess while effectuating the intent of the jury," Koh said in her ruling.

Apple and Samsung account for one in two mobile phones sold. They also rely on each other for components and business.

Their legal tussle has been viewed as a proxy war between Apple and Google Inc as Samsung's flagship Galaxy smartphones and tablets run on Google's Android operating system.

Shares in Apple closed down 2.5 percent at $430.47 on Nasdaq.

(Reporting by Ben Berkowitz; Editing by Gary Hill and Richard Chang)

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Kelly lifts No. 3 Duke past No. 5 Miami 79-76

DURHAM, N.C. (AP) — Ryan Kelly had waited two months for the chance to help his Duke teammates reclaim the form that made them the nation's top-ranked team.

He returned with a stunning performance that shook up No. 5 Miami and left his own Hall of Fame coach struggling for the right words.

The senior scored a career-high 36 points in his return from a foot injury that had sidelined him since January, helping the third-ranked Blue Devils beat the Hurricanes 79-76 on Saturday night in a matchup of the Atlantic Coast Conference's top teams.

"I guess I was ready for it," Kelly said. "That's all I can say."

Kelly knocked down 10 of 14 shots — including 7 of 9 3-pointers— for the Blue Devils (25-4, 12-4 ACC), who avenged a blowout road loss in January by grinding out a tough win in Cameron Indoor Stadium. He also went 9-for-12 from the foul line and pulled down seven rebounds in 32 minutes.

It left Duke coach Mike Krzyzewski joking to reporters that he was interested to read how they'd describe Kelly's big night.

"I mean, me saying 'spectacular' or whatever doesn't do his performance justice," Krzyzewski said. "One for the ages. Probably as good a performance as any player has had — a Duke player has had — in Cameron."

Kelly's performance was the highlight of a game that certainly lived up to the teams' lofty rankings and their status as the league's best. Miami led by seven in the first half and by two at the break, while Duke never led by more than five until the final 3 minutes.

Quinn Cook added 15 points, including a 3-pointer that gave Duke a 10-point lead with 1:55 left.

But the Hurricanes (23-5, 14-2) made a frantic rally and missed two 3s in the final seconds to tie it. Shane Larkin came up short on the first over Kelly. Durand Scott ran down the rebound and fired a pass to the left corner to Rion Brown, whose final 3 clanged off the rim as the horn sounded.

Kelly's season-high was 22 points and his career-best was 23 points before Saturday. He had missed 13 straight games with the right foot injury, though he had been gradually increasing his work in practice in recent days before going right back in the starting lineup Saturday.

"I just knew I was going to play my hardest," Kelly said. "Honestly, though, more than anything it was just going to be whether I could hold up with my breathing. I haven't played any games in a long time, and being in a game is a lot different from being in practice or anything you can do. But I think I held up all right."

He missed a 3 on Duke's first possession, but knocked one down 2½ minutes in and never looked rusty.

"Well, I thought we prepared for Ryan Kelly but obviously not for that Ryan Kelly," Miami coach Jim Larranaga said. "He was sensational from start to finish."

Miami had beaten Duke 90-63 in January and had already clinched at least a share of the ACC regular-season title with the Blue Devils' loss at Virginia on Thursday night. Miami will win its first ACC crown outright by beating either Georgia Tech or Clemson at home this week.

But Saturday's game was about more than just the league standings or the chance to avenge that blowout loss for the Blue Devils. Rather, this was their chance to reclaim some momentum for March with Kelly's return.

"The thing (the win) does for us is it gives us a chance over the next few weeks to transition to the NCAA tournament," Krzyzewski said. "We're just running a little bit different race than anybody else right now. And it doesn't mean everything's OK, but it's a lot better."

Duke was unbeaten with nonconference wins against Kentucky, Louisville and Ohio State when Kelly went down against Clemson in January. It was during Kelly's absence that Duke suffered 27-point loss at Miami on Jan. 23, a game that saw the Hurricanes romping unchecked through Duke's passive defense and even slapping the floor in an apparent jab at the Blue Devils' tradition.

The 6-foot-11 forward was averaging 13 points and five rebounds, and stretched defenses with his outside shot to open space for Mason Plumlee inside.

Fittingly, he started the spurt that finally put the Blue Devils ahead for good. First he hit a pair of free throws, then knocked down a 3-pointer over Kenny Kadji with the shot clock winding down to push Duke to a 58-56 lead with 9:13 left. Plumlee followed with a short hook to cap the 7-0 run for a 60-56 edge.

Duke extended its lead with another 7-0 burst, with freshman Rasheed Sulaimon scoring a pair of driving baskets before Cook's 3 that appeared to have Duke in control.

Miami fought back, getting a 3-pointer from Trey McKinney Jones to make it a one-possession game with 1:06 left. But in addition to those late misses, Larkin also had a costly turnover when he threw away a sideline pass to Brown with Miami trailing by just two with about 30 seconds left.

"This is the type of game that everybody lives for," said Durand Scott, who scored 12 for the Hurricanes. "You can't really get mad at this. We went out there, we played our hardest, we're proud of ourselves, and our team did the best that we could. We just fell short a 3."

Duke shot 52 percent, with Kelly's big day offsetting Seth Curry's struggles (seven points on 2-for-8 shooting) and Miami's domination on the boards that led to a 20-4 edge in second-chance points.

Larkin scored 25 points to lead Miami, while Kenny Kadji added 17 points and 10 rebounds. But big man Reggie Johnson had a miserable night by going scoreless on 0-for-5 shooting and picking up his fourth foul in the first minute after halftime.

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WHO: Slight cancer risk after Japan nuke accident

LONDON (AP) — Two years after Japan's nuclear plant disaster, an international team of experts said Thursday that residents of areas hit by the highest doses of radiation face an increased cancer risk so small it probably won't be detectable.

In fact, experts calculated that increase at about 1 extra percentage point added to a Japanese infant's lifetime cancer risk.

"The additional risk is quite small and will probably be hidden by the noise of other (cancer) risks like people's lifestyle choices and statistical fluctuations," said Richard Wakeford of the University of Manchester, one of the authors of the report. "It's more important not to start smoking than having been in Fukushima."

The report was issued by the World Health Organization, which asked scientists to study the health effects of the disaster in Fukushima, a rural farming region.

On March 11, 2011, an earthquake and tsunami knocked out the Fukushima plant's power and cooling systems, causing meltdowns in three reactors and spewing radiation into the surrounding air, soil and water. The most exposed populations were directly under the plumes of radiation in the most affected communities in Fukushima, which is about 150 miles (240 kilometers) north of Tokyo.

In the report, the highest increases in risk are for people exposed as babies to radiation in the most heavily affected areas. Normally in Japan, the lifetime risk of developing cancer of an organ is about 41 percent for men and 29 percent for women. The new report said that for infants in the most heavily exposed areas, the radiation from Fukushima would add about 1 percentage point to those numbers.

Experts had been particularly worried about a spike in thyroid cancer, since radioactive iodine released in nuclear accidents is absorbed by the thyroid, especially in children. After the Chernobyl disaster, about 6,000 children exposed to radiation later developed thyroid cancer because many drank contaminated milk after the accident.

In Japan, dairy radiation levels were closely monitored, but children are not big milk drinkers there.

The WHO report estimated that women exposed as infants to the most radiation after the Fukushima accident would have a 70 percent higher chance of getting thyroid cancer in their lifetimes. But thyroid cancer is extremely rare and one of the most treatable cancers when caught early. A woman's normal lifetime risk of developing it is about 0.75 percent. That number would rise by 0.5 under the calculated increase for women who got the highest radiation doses as infants.

Wakeford said the increase may be so small it will probably not be observable.

For people beyond the most directly affected areas of Fukushima, Wakeford said the projected cancer risk from the radiation dropped dramatically. "The risks to everyone else were just infinitesimal."

David Brenner of Columbia University in New York, an expert on radiation-induced cancers, said that although the risk to individuals is tiny outside the most contaminated areas, some cancers might still result, at least in theory. But they'd be too rare to be detectable in overall cancer rates, he said.

Brenner said the numerical risk estimates in the WHO report were not surprising. He also said they should be considered imprecise because of the difficulty in determining risk from low doses of radiation. He was not connected with the WHO report.

Some experts said it was surprising that any increase in cancer was even predicted.

"On the basis of the radiation doses people have received, there is no reason to think there would be an increase in cancer in the next 50 years," said Wade Allison, an emeritus professor of physics at Oxford University, who also had no role in developing the new report. "The very small increase in cancers means that it's even less than the risk of crossing the road," he said.

WHO acknowledged in its report that it relied on some assumptions that may have resulted in an overestimate of the radiation dose in the general population.

Gerry Thomas, a professor of molecular pathology at Imperial College London, accused the United Nations health agency of hyping the cancer risk.

"It's understandable that WHO wants to err on the side of caution, but telling the Japanese about a barely significant personal risk may not be helpful," she said.

Thomas said the WHO report used inflated estimates of radiation doses and didn't properly take into account Japan's quick evacuation of people from Fukushima.

"This will fuel fears in Japan that could be more dangerous than the physical effects of radiation," she said, noting that people living under stress have higher rates of heart problems, suicide and mental illness.

In Japan, Norio Kanno, the chief of Iitate village, in one of the regions hardest hit by the disaster, harshly criticized the WHO report on Japanese public television channel NHK, describing it as "totally hypothetical."

Many people who remain in Fukushima still fear long-term health risks from the radiation, and some refuse to let their children play outside or eat locally grown food.

Some restrictions have been lifted on a 12-mile (20-kilometer) zone around the nuclear plant. But large sections of land in the area remain off-limits. Many residents aren't expected to be able to return to their homes for years.

Kanno accused the report's authors of exaggerating the cancer risk and stoking fear among residents.

"I'm enraged," he said.

___

Mari Yamaguchi in Tokyo and AP Science Writer Malcolm Ritter in New York contributed to this report.

__

Online:

WHO report: http://bit.ly/YDCXcb

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Next Groupon CEO will have experience, Lefkofsky says

Groupon has fired its chief executive and the money-losing company faces several challenges, but Executive Chairman Eric Lefkofsky is undeterred. The Chicago-based e-commerce site, he said, is "inches away from greatness."

Lefkofsky, Groupon's co-founder and largest shareholder, speaking to the Tribune in his first public comments since Thursday's ouster of Andrew Mason, declined to discuss specific reasons for replacing Mason, though he pointed out at least one recent management error.

He also sounded as if he now agrees with the widespread sentiment that Mason didn't have the right skills to deal with the company's unique problems: It is global, large, technology-driven and growing fast, but it's also unprofitable, dogged by competitors and under intense scrutiny for its missteps.

Lefkofsky said he looked forward to hiring a CEO "who has experience dealing with the issues we're dealing with … who has been there and done that."

In spite of Groupon's troubles, "the long-term horizon of the company is fantastic," Lefkofsky said.

He'll have to forgive Wall Street if it casts a skeptical eye at his optimism. Even though it's less than 5 years old, Groupon popularized the idea of using the Internet to match local merchants and customers and it is now an established business. A new CEO isn't going to make the company's problems magically disappear.

Groupon is at a crossroads, not just because it has to find a replacement for Mason, the co-founder whose playful, irreverent style set the tone for the company's culture. Groupon faces shrinking consumer interest in its daily deals business that sends online coupons for everything from restaurants to pedicures to inboxes every day. And it has huge problems in its European operations.

Groupon is attempting to evolve its business model beyond daily deals into an ongoing, search-driven local marketplace. But the investment has been expensive. To boost growth, the company launched a separate business selling products at steep discounts. But that retail business has dragged down profit margins.

"While a new CEO may bring better skill sets (particularly in technology or online commerce), we believe that the challenges Groupon faces will only increase," wrote Edward Woo, an analyst at Ascendiant Capital Markets.

Lefkofsky supports the new course Mason had charted with input from him and other members of the board of directors.

In North America, email now drives less than 50 percent of Groupon's transactions. Half of local transaction volume comes from what the company calls its "deal bank," its searchable inventory of deals that are active for longer periods of time.

"This isn't about 'Oh, my God, we're going down the completely wrong road,'" Lefkofsky said. "Largely, the strategy and the business is going to continue down the exact same path it has been on."

He described Groupon as a "pioneer of curated commerce. We're selecting a certain number of deals every day, and then we're serving them out to people, sometimes via email, sometimes via mobile."

But the board decided that as the company enters the next stage of its evolution, the time was right to find "a new CEO that had some of those skills we need long term," Lefkofsky said.

In the interim, Lefkofsky and another director, former AOL Inc. executive Ted Leonsis, will run the company.

"Both (Ted) and I felt the company was inches away from greatness," Lefkofsky said.

That's a stretch judging by the stock market. Groupon's shares are down 75 percent in the 15 months since it went public at $20 a share. On Friday, in reaction to Mason's exit, the stock jumped more than 12 percent to close at $5.10.

While Groupon caught fire as a startup, it has stumbled repeatedly as it has grown. The company made embarrassing mistakes during the process of going public and then faced scrutiny over its accounting methods.

Since going public, Groupon has turned a quarterly profit only once.

In the fourth quarter, its net loss grew to $81.1 million, and the company projected weaker-than-expected operating income for the current quarter.

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Blackhawks' streak at 21 with overtime win over Blue Jackets

Chalk one up for the "slug defenseman."

Brent Seabrook's goal in overtime kept the Blackhawks' record-breaking streak alive as they edged the Blue Jackets 4-3 Friday night at the United Center to remain without a regulation loss this season. At 18-0-3, the Hawks keep piling up the points, securing 39 of a possible 42 this season.

Friday night's hero — with a little help from his friends — was Seabrook, who took a pass from Jonathan Toews 3 minutes, 23 seconds into overtime and beat Blue Jackets goaltender Steve Mason for the game-winner.

"(Toews) is good — he's a hell of a player," Seabrook said, giving credit to his captain. "He usually likes to shoot low and I think Mason was probably thinking he was going to shoot it. (Toews) had a slug defenseman (in me) going down on the off side so he made a great pass. I don't think the Blue Jackets defenseman, Mason or I expected it to come. Somehow he saw me and made a great pass.

"He didn't look at me once and I didn't yell. He's pretty good in those situations so I just let him do his thing. I don't think I shot the puck, it was such a hard pass it hit my stick and just bounced in."

Against a banged up and usually bumbling Blue Jackets squad, the Hawks increased their points streak over the course of two seasons to 27 consecutive games — third-longest in NHL history.

Viktor Stalberg, Patrick Sharp and Bryan Bickell had goals in regulation and Ray Emery earned the victory in net for the Hawks.

Vinny Prospal, Artem Anisimov and Ryan Johansen scored for the Blue Jackets but it wasn't enough. The Blue Jackets, who entered the game with the fewest points in the league, were without defensemen James Wisniewski, Jack Johnson and John Moore and forwards Derick Brassard and Brandon Dubinsky but fought gamely.

A night after the Hawks opened their victory over the Blues with a Toews goal just 10 seconds into the game, the Blue Jackets struck quickly when Prospal jumped on a big rebound Emery yielded off a Derek Dorsett shot and fired it into the open net with 31 seconds elapsed.

Stalberg later continued his mastery over the Blue Jackets with his 11th goal in his 15th game against them when the winger tapped in a puck in the crease during a scramble.

"We're finding ways to really get it done," Stalberg said. "It's pretty amazing to be a part of a run like this. It seems like it hasn't gotten to our heads at all. We're staying with it … and that's all we can do right now."

The Jackets kept coming and took the lead when Anisimov's shot from the point deflected off the Hawks' Daniel Carcillo and bounded past Emery.

Late in the second, the Hawks' offense kicked into gear. Sharp evened the score at 2-2 when his backhander from the left circle somehow made it through Mason's pads and trickled across the goal line.

Bickell's splendid individual effort put the Hawks ahead just less than a minute later. The winger stripped Anisimov of the puck, skated in two-on-one with Stalberg and rifled a wrist shot from the left dot past Mason to the stick side.

After Johansen tied it midway through the third, the goalies held and the game went to overtime where Toews and Seabrook won it.

"(The Blue Jackets are) a hard-working team," Seabrook said. "They play 60 minutes hard and you have to come to play this team hard every time. There are no easy games in this league and you never can take a night off. I thought we fought hard on the second part of a back-to-back and it was good to get the win."

ckuc@tribune.com

Twitter @ChrisKuc

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Judge cuts Apple award versus Samsung, sets new damages trial

(Reuters) - Apple Inc had a major setback in its ongoing mobile patents battle with Samsung Electronics on Friday, as a federal judge slashed a $1.05 billion jury award by more than 40 percent and set a new trial to determine damages.

Apple won the award last year against Samsung in what was the biggest and highest-profile of a number of legal trials around the world, centered on the use and alleged abuse of patents in a highly competitive mobile market.

The iPhone maker convinced the jury that the Korean company, which in 2012 overtook Apple as the global smartphone leader, had infringed on its iPhone and iPad patents.

"We are pleased that the court decided to strike $450,514,650 from the jury's award," the Korean company said in a statement. "Samsung intends to seek further review as to the remaining award."

Apple declined to comment.

Friday's ruling by Judge Lucy Koh of the U.S. District Court Northern District of California in San Jose means the two mobile electronics companies may once again square off in a California court to decide how much of the $450.5 million struck from the damages, associated with 14 Samsung products, should stand.

Koh said the jury had incorrectly calculated part of the damages and that a new trial was needed to determine the actual, final dollar amount. That could end up less than or more than the original $450.5 million set by the jury.

Koh, rejecting Apple's motion for an increase in the jury's damages award, ordered a new trial on damages for the 14 devices, which include the Galaxy SII. The jury's award to Apple for 14 other separate products, totaling almost $599 million, was maintained.

"The court has identified an impermissible legal theory on which the jury based its award and cannot reasonably calculate the amount of excess while effectuating the intent of the jury," Koh said in her ruling.

Apple and Samsung account for one in two mobile phones sold. They also rely on each other for components and business.

Their legal tussle has been viewed as a proxy war between Apple and Google Inc as Samsung's flagship Galaxy smartphones and tablets run on Google's Android operating system.

Shares in Apple closed down 2.5 percent at $430.47 on Nasdaq.

(Reporting by Ben Berkowitz; Editing by Gary Hill and Richard Chang)

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Heat top Grizzlies 98-91 for 13th straight win

MIAMI (AP) — LeBron James endured his worst shooting night of the season, and still delivered the biggest basket of the game.

That's how things are going these days for the Miami Heat.

Dwyane Wade scored 22 points and set up James for a critical 3-pointer in the final half-minute, and the Heat extended their winning streak to 13 games by beating the Memphis Grizzlies 98-91 on Friday night.

"I thought this was one of our better wins of the season," Heat coach Erik Spoelstra said. "It was tough. We had to work for everything. We had to find a different way to win, deal with frustration ... and then make some plays down the stretch."

On a night when he shot just 4 for 14, James finished two rebounds shy of a triple-double, with 18 points and 10 assists. Shane Battier scored 14, Chris Bosh added 13 and Ray Allen had 10 for Miami, which snapped Memphis' eight-game winning streak.

But down the stretch, James — who had 14 points, four rebounds and four assists in the fourth quarter alone — was simply too much to handle.

"He made the big shot and that's all that matters," said Memphis' Marc Gasol, who led all scorers with 24. "He wasn't having the usual (numbers) he normally gets. I think we did a good job. He took a shot like he's supposed to and made it so kudos, move on."

Gasol tied the game with a pair of free throws with 2:44 left, before the Heat scored the next five — and quickly — to build a bit of breathing room. Bosh had a three-point play, and Wade took off in transition for a slam that put Miami up 90-85.

Memphis wasn't done. Gasol made two more free throws, then scored off a dribble-drive with 42.5 seconds left to get the Grizzlies within 90-89.

But that was the last gasp.

On the next Miami possession, James hit a 3-pointer with 24 seconds remaining, and the Heat made free throws from there to close out the win.

"I've got confidence I'm going to knock it down, just like all the other ones I've missed," James said. "I had confidence in those too, but they just don't go down. That's how the ball goes sometimes. But I'm always confident in my next shot. D-Wade gave me a great pass and I was able to knock it down."

The Grizzlies got 14 points from Zach Randolph, who said he was bothered throughout after turning his left ankle on the game's first possession. Mike Conley added 14 for Memphis, which got 10 from Quincy Pondexter.

"I have no problem with the game," Grizzlies coach Lionel Hollins said. "We were right there. They just made a few more plays than we did down the stretch."

For the Heat, this week was filled with attention for things like pregame dunking exhibitions and their version of a "Harlem Shake" video — which generated more than 5 million views on YouTube in about 24 hours of being posted.

Then came a basketball game, the likes of which had not been seen in the NBA for almost 20 years.

According to STATS LLC, the most recent time before Friday that there was a game between two teams that were carrying at least 12- and eight-game winning streaks was Dec. 3, 1993, when Atlanta (which had won nine straight) beat Houston (which had won 15 straight).

In fact, the Heat-Grizzlies game was just the eighth in NBA history pitting two teams with active winning streaks of at least eight in a row.

Want more significance? Spoelstra and Hollins were announced earlier in the day as the Eastern and Western Conference coaches of the month, respectively. And news came just before tipoff that James was picked yet again as the East's player of the month, making him 4-for-4 in that department this season.

"Just a residual of team success," Spoelstra said.

Added Hollins: "I'm the head coach and I get the credit and I get the blame, but those guys have been playing extremely well ... coming together with all the turmoil and all the chaos that we've had."

So of course, in a game between the NBA's two hottest teams, the start was ice cold. The teams combined to miss 23 of their first 32 shots.

And for James, things were downright frigid.

After the best shooting month of his career — the three-time MVP made 64 percent of his shots in February, the best month of any NBA player with 200 attempts since Kareem Abdul-Jabbar shot 65 percent in March 1983 — James' run in March started in a decidedly different manner.

James made a 3-pointer on his first attempt of the night, then missed his next eight tries, and had just four points after three quarters.

A dunk with 9:19 left in regulation was just his second made field goal of the night, and he hit a runner midway through the fourth to reach double-digit scoring for the 475th straight regular-season game, going back to Jan. 6, 2007.

"You won't see that happening too many times," Wade said. "It was great that on a night where he didn't have it going offensively, he had trust in his guys and didn't force up 20-odd shots. He played to pass and he still was aggressive. We'll take it. We'll take it, him getting those numbers and us getting the win."

NOTES: The Heat had the blessing of team officials when they took a half-hour before practice Thursday to tape the "Harlem Shake" video in their locker room. "We don't need to be serious all the time," Bosh said. ... Battier has at least one 3-pointer in 14 straight games, the fourth-best such streak of his career. ... Miami is at New York on Sunday, facing a Knicks team that has already beaten the Heat twice — by 20 points each time. "Our guys will look forward to playing this game," Spoelstra said.

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Incomes see largest drop in 20 years

U.S. consumer spending rose in January as Americans spent more on services, with savings providing a cushion after income recorded its biggest drop in 20 years.

Income tumbled 3.6 percent, the largest drop since January 1993. Part of the decline was payback for a 2.6 percent surge in December as businesses, anxious about higher taxes, rushed to pay dividends and bonuses before the new year.

A portion of the drop in January also reflected the tax hikes. The income at the disposal of households after inflation and taxes plunged a 4.0 percent in January after advancing 2.7 percent in December.

The Commerce Department said on Friday consumer spending increased 0.2 percent in January after a revised 0.1 percent rise the prior month. Spending had previously been estimated to have increased 0.2 percent in December.

January's increase was in line with economists' expectations. Spending accounts for about 70 percent of U.S. economic activity and when adjusted for inflation, it gained 0.1 percent after a similar increase in December.

Though spending rose in January, it was supported by a rise in services, probably related to utilities consumption. Spending on goods fell, suggesting some hit from the expiration at the end of 2012 of a 2 percent payroll tax cut. Tax rates for wealthy Americans also increased.

The impact is expected to be larger in February's spending data and possibly extend through the first half of the year as households adjust to smaller paychecks, which are also being strained by rising gasoline prices.

Economists expect consumer spending in the first three months of this year to slow down sharply from the fourth quarter's 2.1 percent annual pace.

With income dropping sharply and spending rising, the saving rate - the percentage of disposable income households are socking away - fell to 2.4 percent, the lowest level since November 2007. The rate had jumped to 6.4 percent in December.

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Groupon CEO Andrew Mason to staff: 'I was fired today'

After he was fired Thursday, Andrew Mason wrote a note to his Groupon colleagues filled with the same offbeat humor, charm and candor that defined his tenure as chief executive of the daily deals company he co-founded.

"After four and a half intense and wonderful years as CEO of Groupon, I've decided that I'd like to spend more time with my family," the letter began. "Just kidding — I was fired today."

His ouster came as no surprise. Questions about his future have been swirling for months because of Groupon's poor performance since going public a little more than a year ago.

The end of the road for the 32-year-old Mason came a day after the Chicago-based company posted disappointing fourth-quarter earnings that sent its stock reeling. But his exit was signaled three months ago when an anonymous leak to a well-read tech blog indicated that Groupon's board of directors was considering replacing Mason.

Mason even alluded to his preordained departure in his farewell note: "If you're wondering why ... you haven't been paying attention. … As CEO I am accountable."

Mason's firing also reflects a changing company with needs different than the skyrocketing startup that he helped create in 2008. His rapid rise and fall is hardly unusual in entrepreneurial circles. It's hard to transition from visionary to manager of a complex, global enterprise and the pace at Groupon was nearly unprecedented.

"I've always thought they got a bad rap in the press," Matt Moog, a Chicago tech entrepreneur, said of Groupon's leaders. "It's extraordinarily difficult to grow a company as fast as they did and get it all right the first time. The change in leadership will give them a chance to back away from that criticism a little bit and try to keep growing the company."

Groupon's struggles have been stunning, and dispiriting, to many in Chicago because so many expectations were wrapped up in its early success. The city's tech scene has worked through several boom and bust cycles trying to put itself on the map as a regional center. That ambition is held not just by local entrepreneurs and investors, but civic boosters all the way up to Mayor Rahm Emanuel.

And for a while, Groupon delivered the goods. The company evolved into one of the hottest names in technology in less than three years, single-handedly redefining Chicago as one of the most exciting cities in the country for digital business. Employment at the company grew from a handful to more than 10,000 worldwide as the company's valuation blossomed into the billions.

Groupon's red-hot growth attracted numerous imitators, from LivingSocial to Amazon. Google noticed the competitive threat to its local advertising sales and tried to purchase Groupon in 2010 for nearly $6 billion. Groupon's leaders said no deal.

For a while it looked like a smart call. Investors cheered Groupon's initial public offering in November 2011. It ended its first day as a public company worth more than $17 billion.

But since then Groupon has floundered, as consumers' appetite for heavily discounted deals on restaurants, yoga classes and pedicures has shrunk. To boost growth the company started Groupon Goods, an online retailer selling a seemingly random assortment of products — everything from leggings to cowhide rugs — at a discount.

Few analysts believe Groupon can effectively compete in the online retailer space against the likes of Amazon. Some see it as little more than an expensive way to beef up sales and, ultimately, as a distraction from its lagging daily deals business.

A more promising initiative may be Groupon's local marketplace, a shift from pushing out daily deals to pulling in customers through ongoing, search-driven offers. Launched in November in Chicago and New York, customers who search online for various products and services will see relevant deals on Groupon, hopefully pulling them to the site to fulfill their purchases.

The company called it an "evolutionary step" toward demand shopping, while Mason, on what was his last conference call as CEO of Groupon on Wednesday, said it was a necessary change of direction.

"It's hard to believe that just a short time ago we were a deal-a-day business," he said. "As you can see, our business continues to evolve at a breakneck pace."

Questions about the company's direction — and identity — will now fall to someone else.

Groupon, valued at less than $3 billion, said it has launched a search for Mason's replacement. In the meantime, Executive Chairman Eric Lefkofsky and Vice Chairman Ted Leonsis will be in charge.

"This company is in a different phase of its growth now and it requires a slightly different skill set," said Arvind Bhatia, a senior research analyst at Sterne Agee. "What they need is somebody who has e-commerce experience and who has an operational background — not just a visionary."

As co-founder and chief executive, Mason not only was Groupon's public face, but also defined its culture. Unlike Mark Zuckerberg of Facebook and other high-profile tech entrepreneurs, Mason did not grow up a computer-programming whiz.

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WHO: Slight cancer risk after Japan nuke accident

LONDON (AP) — Two years after Japan's nuclear plant disaster, an international team of experts said Thursday that residents of areas hit by the highest doses of radiation face an increased cancer risk so small it probably won't be detectable.

In fact, experts calculated that increase at about 1 extra percentage point added to a Japanese infant's lifetime cancer risk.

"The additional risk is quite small and will probably be hidden by the noise of other (cancer) risks like people's lifestyle choices and statistical fluctuations," said Richard Wakeford of the University of Manchester, one of the authors of the report. "It's more important not to start smoking than having been in Fukushima."

The report was issued by the World Health Organization, which asked scientists to study the health effects of the disaster in Fukushima, a rural farming region.

On March 11, 2011, an earthquake and tsunami knocked out the Fukushima plant's power and cooling systems, causing meltdowns in three reactors and spewing radiation into the surrounding air, soil and water. The most exposed populations were directly under the plumes of radiation in the most affected communities in Fukushima, which is about 150 miles (240 kilometers) north of Tokyo.

In the report, the highest increases in risk are for people exposed as babies to radiation in the most heavily affected areas. Normally in Japan, the lifetime risk of developing cancer of an organ is about 41 percent for men and 29 percent for women. The new report said that for infants in the most heavily exposed areas, the radiation from Fukushima would add about 1 percentage point to those numbers.

Experts had been particularly worried about a spike in thyroid cancer, since radioactive iodine released in nuclear accidents is absorbed by the thyroid, especially in children. After the Chernobyl disaster, about 6,000 children exposed to radiation later developed thyroid cancer because many drank contaminated milk after the accident.

In Japan, dairy radiation levels were closely monitored, but children are not big milk drinkers there.

The WHO report estimated that women exposed as infants to the most radiation after the Fukushima accident would have a 70 percent higher chance of getting thyroid cancer in their lifetimes. But thyroid cancer is extremely rare and one of the most treatable cancers when caught early. A woman's normal lifetime risk of developing it is about 0.75 percent. That number would rise by 0.5 under the calculated increase for women who got the highest radiation doses as infants.

Wakeford said the increase may be so small it will probably not be observable.

For people beyond the most directly affected areas of Fukushima, Wakeford said the projected cancer risk from the radiation dropped dramatically. "The risks to everyone else were just infinitesimal."

David Brenner of Columbia University in New York, an expert on radiation-induced cancers, said that although the risk to individuals is tiny outside the most contaminated areas, some cancers might still result, at least in theory. But they'd be too rare to be detectable in overall cancer rates, he said.

Brenner said the numerical risk estimates in the WHO report were not surprising. He also said they should be considered imprecise because of the difficulty in determining risk from low doses of radiation. He was not connected with the WHO report.

Some experts said it was surprising that any increase in cancer was even predicted.

"On the basis of the radiation doses people have received, there is no reason to think there would be an increase in cancer in the next 50 years," said Wade Allison, an emeritus professor of physics at Oxford University, who also had no role in developing the new report. "The very small increase in cancers means that it's even less than the risk of crossing the road," he said.

WHO acknowledged in its report that it relied on some assumptions that may have resulted in an overestimate of the radiation dose in the general population.

Gerry Thomas, a professor of molecular pathology at Imperial College London, accused the United Nations health agency of hyping the cancer risk.

"It's understandable that WHO wants to err on the side of caution, but telling the Japanese about a barely significant personal risk may not be helpful," she said.

Thomas said the WHO report used inflated estimates of radiation doses and didn't properly take into account Japan's quick evacuation of people from Fukushima.

"This will fuel fears in Japan that could be more dangerous than the physical effects of radiation," she said, noting that people living under stress have higher rates of heart problems, suicide and mental illness.

In Japan, Norio Kanno, the chief of Iitate village, in one of the regions hardest hit by the disaster, harshly criticized the WHO report on Japanese public television channel NHK, describing it as "totally hypothetical."

Many people who remain in Fukushima still fear long-term health risks from the radiation, and some refuse to let their children play outside or eat locally grown food.

Some restrictions have been lifted on a 12-mile (20-kilometer) zone around the nuclear plant. But large sections of land in the area remain off-limits. Many residents aren't expected to be able to return to their homes for years.

Kanno accused the report's authors of exaggerating the cancer risk and stoking fear among residents.

"I'm enraged," he said.

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Mari Yamaguchi in Tokyo and AP Science Writer Malcolm Ritter in New York contributed to this report.

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Online:

WHO report: http://bit.ly/YDCXcb

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George Lopez to host Playboy Jazz Festival

LOS ANGELES (AP) — George Lopez is taking over as master of ceremonies of the annual Playboy Jazz Festival.

The comedian was announced as the festival's new host Thursday at an event at the Playboy Mansion.

"This is iconic," said the former star of the ABC sitcom "George Lopez" and the TBS talk show "Lopez Tonight." ''I've never been here before. I was married for 17 years. I couldn't even have a Playboy air freshener."

Bill Cosby previously served as the festival's host for more than 30 years. Cosby was a fixture at the gathering of jazz luminaries since the first festival was held in 1979.

Lopez said Cosby called him to give him advice on the gig. His tips included not letting musicians in his dressing room "because they'll eat all your food and drink all your drink," joked Lopez.

This year's show will feature such artists as Herbie Hancock, Jeffrey Osborne, Sheila E. and Grace Kelly, who were on hand at Thursday's event.

The Playboy Jazz Festival is scheduled for June 15 and 16 at the Hollywood Bowl.

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Follow AP Entertainment Writer Derrik J. Lang at http://www.twitter.com/derrikjlang .

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Economic expansion weakest since 2011

The U.S. economy barely grew in the fourth quarter although a slightly better performance in exports and fewer imports led the government to scratch an earlier estimate that showed an economic contraction.

Gross domestic product expanded at a 0.1 percent annual rate, the Commerce Department said on Thursday, missing the 0.5 percent gain forecast by analysts in a Reuters poll.

The growth rate was the slowest since the first quarter of 2011 and far from what is needed to fuel a faster drop in the unemployment rate.

However, much of the weakness came from a slowdown in inventory accumulation and a sharp drop in military spending. These factors are expected to reverse in the first quarter.

Consumer spending was more robust by comparison, although it only expanded at a 2.1 percent annual rate.

Because household spending powers about 70 percent of national output, this still-lackluster pace of growth suggests underlying momentum in the economy was quite modest as it entered the first quarter, when significant fiscal tightening began.

Initially, the government had estimated the economy shrank at a 0.1 percent annual rate in the last three months of 2012. That had shocked economists.

Thursday's report showed the reasons for the decline were mostly as initially estimated. Inventories subtracted 1.55 percentage points from the GDP growth rate during the period, a little more of a drag than initially estimated. Defense spending plunged 22 percent, shaving 1.28 points off growth as in the previous estimate.

There were some relatively bright spots, however. Imports fell 4.5 percent during the period, which added to the overall growth rate because it was a larger drop than in the third quarter. Buying goods from foreigners bleeds money from the economy, subtracting from economic growth.

Also helping reverse the initial view of an economic contraction, exports did not fall as much during the period as the government had thought when it released its advance GDP estimate in January. Exports have been hampered by a recession in Europe, a cooling Chinese economy and storm-related port disruptions.

Excluding the volatile inventories component, GDP rose at a revised 1.7 percent rate, in line with expectations. These final sales of goods and services had been previously estimated to have increased at a 1.1 percent pace.

Business spending was revised to show more growth during the period than initially thought, adding about a percentage point to the growth rate.

Growth in home building was revised slightly higher to show a 17.5 percent annual rate. Residential construction is one of the brighter spots in the economy and is benefiting from the Federal Reserve's ultra easy monetary policy stance, which has driven mortgage rates to record lows. (Reporting by Jason Lange; Editing by Andrea Ricci)
 

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Chicago archdiocese to close 5 schools in cost-cutting move

Budget cuts announced Wednesday by the Archdiocese of Chicago signal that the area's Roman Catholics are entering a period of austerity when there will be less money for their parishes and schools.

The cuts, which were officially announced as Cardinal Francis George and other leaders of the church gathered at the Vatican to select a new pope, include closing five schools, eliminating 75 positions at the archdiocese's headquarters and placing a moratorium on loans to parishes from the archdiocese bank for three years. Other changes include creating stricter guidelines for local parishes applying for subsidies and reducing the number of the agencies in the archdiocese.

George, who spoke publicly about the cuts when asked by reporters in Rome, said they are needed to address the archdiocese's chronic financial problems. The archdiocese has run deficits of more than $30 million annually over the last four years, including being $40 million in the red for the fiscal year ending in June 2012.

All told, the measures will save tens of millions of dollars over the next few years, officials said.

“The expenses have gone up, and the income is pretty well flat,” George said after a news conference in Rome about Pope Benedict XVI's last audience Wednesday in St. Peter's Square. “We tried to ride out the recession without making any changes — and we can't do that. We're giving more grants to parishes and schools that need more money. The budget is not balanced. Not just layoffs, but a lot of other things being done, other ways to use the resources we have.”

The archdiocese sold $150 million in bonds in 2012 that helped it get through a cash-flow problem, but ultimately that wasn't enough, George said. He hopes the cuts will enable the archdiocese to balance its budget in two years.

Although the cardinal's announcement made headlines, the archdiocese's financial situation has been no secret to its priests. Several clergymen said they knew the archdiocese had planned to scale back loans to parishes.

“We have already made adjustments,” said the Rev. Dennis Ziomek of St. Barbara Parish in Chicago's Bridgeport neighborhood. “We have to be responsible stewards with the money.”

In a letter posted on the archdiocese website, the cardinal thanked parishioners for their generosity and asked them to pray for the employees now out of a paycheck.

At the archdiocese's Pastoral Center headquarters on Wednesday, people funneled in and out of the building during their lunch breaks but declined comment on the layoffs. Before the announcement, staffers received memos asking them to report to their desks early Wednesday.

Of the 75 positions, 55 were full-time jobs. Sixty people were let go, while the remaining posts had been vacant. Those cuts are expected to save $11 million to $13 million annually by fiscal 2015, George wrote in his letter.

Employees who received pink slips will get job counseling, extended health benefits and generous severance packages.

“We're keeping up counseling for helping people find jobs, looking for places where they might look for jobs,” George said.

Along with the layoffs, the archdiocese will reduce the number of capital loans and grants it gives parishes, while creating “stricter criteria” for them to qualify for the financial assistance.

A Parish Transformation initiative in the works for at least two years will also try to save money by laying out measures to provide more financial stability, though the letter did not give details.

Those cuts are expected to save an additional $13 million to $15 million annually by fiscal 2015, the letter states.

By next year, the archdiocese will reduce its aid to Catholic schools by $10 million. It plans to give scholarships to children affected by the five school closings so they can attend nearby Catholic schools. Officials said low enrollment was a key factor for closing the schools: St. Gregory the Great High, St. Paul-Our Lady of Vilna Elementary and St. Helena of the Cross Elementary in Chicago, plus St. Bernardine in Forest Park and St. Kieran in Chicago Heights.

Now, Catholic schools will start relying on scholarships for student financial aid instead of grants from the archdiocese to make tuition affordable, Superintendent Sister Mary Paul McCaughey said.

She pointed to a new partnership with the Big Shoulders Fund, a charity supporting urban Catholic schools, that will help families pay for school with scholarships.

McCaughey did not expect tuition at other Catholic schools to immediately rise because grants from the archdiocese have been reduced. About two-thirds of schools already have posted their tuition rates for the upcoming school year, she added.

“Although things are challenged, I think (Chicago) is a Catholic community that's always supported its schools,” McCaughey said. “I think the support will be there.”

Outside of St. Bernardine Elementary in west suburban Forest Park, one of the schools that will close this summer, Maria Maxham said she was devastated when she heard last month that she'd have to send her children, one in second grade and the other in fourth grade, to a different school.

Maxham, who lives in Forest Park, said she is not sure the two will attend another local Catholic school because some lack what she thought was St. Bernardine's strength.

“There is so much diversity at St. Bernardine, and that's part of what makes it so fantastic,” Maxham said. “It was a special place and a second family for us.”

The school, which has been open since 1915, has about 100 students currently enrolled in its preschool-through-eighth-grade classrooms.

Administrators, teachers and parents were notified of the closing in January, when McCaughey led a meeting at the school and explained the large amount of money that the archdiocese needed to reduce from the schools budget, Principal Veronica Skelton Cash said.

One family left the school shortly after hearing the news, she added.

Cash, who joined the school in the fall, said there was much frustration among staff members afterward. Many believed they would have at least a few years to turn things around.

“I could see a lot of things changing for the better at this school,” Cash said. “The culture of the community is changing, and we were getting more and more inquiries about the school. There was momentum going forward.”

Current employees were given guidance on severance and benefits by the archdiocese's human resources officials, Cash said. Teachers without jobs will also be placed on a priority list for future employment with the archdiocese, she said.

“I'm incredibly disheartened,” said Daniel Kwarcinski, who hopes to find a job at another private school after teaching art for seven years at St. Bernardine. “There's a need for a school like this where we are at.”

In Rome, George said the decisions to let people go and reduce aid were not easy. But he reiterated that the archdiocese's financial situation drove the decision.

“We have to balance the budget, especially if it's precarious,” he said. “The growth being very slow means we can no longer ignore the kinds of deficit situations that have been imposed on us. We have to take action.”

Tribune reporter Manya A. Brachear reported from Rome, with Tribune reporters Bridget Doyle and Jennifer Delgado in Chicago.

mbrachear@tribune.com

bdoyle@tribune.com

jmdelgado@tribune.com

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Apple CEO says he feels shareholders' pain, urges long view

CUPERTINO, California (Reuters) - Apple Inc CEO Tim Cook on Wednesday acknowledged widespread disappointment in the company's sagging share price but shared few details about its secretive product pipeline and touched only briefly on a raging debate about how best to reward shareholders.

The world's most valuable technology company headed into its annual shareholders' meeting at its headquarters on shakier ground than it has been accustomed to in years, since the iPhone and iPad helped vault the company to premier investment status.

A declining share price has lent weight to Wall Street's demand that it share more of its $137 billion in cash and securities pile - equivalent to Hungary's Gross Domestic Product, and growing - a debate now spearheaded by outspoken hedge fund manager David Einhorn.

Einhorn was not spotted at the meeting at the company's headquarters at 1 Infinite Loop in Cupertino. Cook repeated that the company's board remained in "very very active" discussions about options for cash sharing, and said he shared investors' dissatisfaction over the stock price.

"I don't like it either. The board doesn't like it. The management team doesn't like it," Cook told investors.

"What we are focused on is the long term. This has always been a secret of Apple."

By focusing on the long term, revenue and profit will follow, he said.

Apple had the "mother of all years" last year with growth, in terms of dollars, outpacing that of Microsoft Corp, Google Inc, Nokia and several other major technology companies combined, Cook said.

Cook -- who was re-elected to the board with 99.1 percent of shareholder votes -- added that the company was working on new product categories, but, as usual, would not elaborate.

Speculation is rife on Wall Street and in Silicon Valley that the iPhone maker is working on a project to revolutionize the television and TV content, or a smart "iWatch."

Apple's stock was down 0.25 percent to $447.86 in afternoon trade. It is now down more than 35 percent from its $702.10 September peak.

SHARE AND SHARE ALIKE

Cook presided over Wednesday's staid affair in his typically even-keeled manner. Despite a slipping share price, dissatisfaction on the Street over its cash allocation and uncertainty over its product pipeline, shareholders re-elected the entire board, and Cook won more than 99 percent of the vote in preliminary results.

Cook got the most votes, followed by Walt Disney Co's Bob Iger, who won re-election with 99 percent of shareholder votes. Former Avon Products Inc CEO Andrea Jung, who stepped down after botching several attempts at restructuring the cosmetics company, received the fewest votes of the group, with 84.6 percent of shareholders voting yea.

Carol Shoaff, an Apple shareholder for about the past five years, said after the meeting that she was confident in Apple's leadership and the company was on the right path.

"I think he's good," she said, referring to Cook. "I don't think Steve Jobs would have left him in charge if he didn't believe in him."

Members of the Service Employees International Union protested outside the headquarters to get Apple to reconsider hiring of securities contractor SIS.

Apple's annual shareholder meetings have seemed more like celebrations in recent years. Since the company came out with its first iPhone in 2007, the company multiplied in market value until it peaked in September.

Then Samsung Electronics and Amazon.com Inc began seriously eroding its market share in 2012, powered by arch-rival Google Inc's Android software. On March 14, Samsung will launch the Galaxy SIV smartphone, the latest iteration of a flagship smartphone that helped it dethrone Apple from the top of the industry.

Institutional investors want Apple to share a greater chunk of its cash and securities pile, a demand growing increasingly strident with the company's stock wallowing at levels untested since the start of 2012.

Einhorn is advocating "iPrefs," preferred stock that will carry a perpetual 4 percent dividend to boost returns while not hampering cash flow.

On Friday, Einhorn won an important legal victory that strengthened his hand. His Greenlight Capital secured an injunction that invalidated shareholder voting on a proposal to scrap Apple's power to issue preferred stock at its discretion.

Apple says this would enhance governance. But the hedge fund manager argued it could complicate efforts to issue preferred securities in the future.

Cook said again on Wednesday that Einhorn's lawsuit - regardless of its efficacy - was a "silly sideshow." The underlying principle of cash distribution was something he and the board took seriously, he added.

The proposal was not put forth on Wednesday but Apple shareholders and representatives from the California Public Employees Retirement System and the Nathan Cummings Foundation spoke in favor of it at the meeting.

CalPers, owner of 2.7 million Apple shares, had supported the so-called Proposal 2. Senior Portfolio Manager Anne Simpson said it was unfortunate the measure could not be put forward.

"We know there is hot debate going on with cash," Simpson told the assembled shareholders. "We are willing and happy to wait."

NEW HQ TO BE DELAYED

Cook, who took over from late company co-founder Steve Jobs in 2011, answered a variety of questions from shareholders, including some on Apple's new headquarters, labor conditions in its factories and product plans.

One shareholder also asked why there was no bathroom in an Apple retail store in Santa Monica, Calif. Cook, acknowledging that it was an important point, said he will look into it.

On the new headquarters, Cook said the company plans to break ground later this year and occupy the facilities in 2016, a delay from the original 2015 target date.

The meeting largely followed the script with no distractions. Shareholders voted down two shareholder proposals, both of which were opposed by Apple's board. One wanted Apple leadership to hold more stock, the other was a proposal to create a board committee on human rights.

(Writing by Edwin Chan; Editing by Lisa Von Ahn, Tim Dobbyn and Dan Grebler)

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Medicare paid $5.1B for poor nursing home care

SAN FRANCISCO (AP) — Medicare paid billions in taxpayer dollars to nursing homes nationwide that were not meeting basic requirements to look after their residents, government investigators have found.

The report, released Thursday by the Department of Health and Human Services' inspector general, said Medicare paid about $5.1 billion for patients to stay in skilled nursing facilities that failed to meet federal quality of care rules in 2009, in some cases resulting in dangerous and neglectful conditions.

One out of every three times patients wound up in nursing homes that year, they landed in facilities that failed to follow basic care requirements laid out by the federal agency that administers Medicare, investigators estimated.

By law, nursing homes need to write up care plans specially tailored for each resident, so doctors, nurses, therapists and all other caregivers are on the same page about how to help residents reach the highest possible levels of physical, mental and psychological well-being.

Not only are residents often going without the crucial help they need, but the government could be spending taxpayer money on facilities that could endanger people's health, the report concluded. The findings come as concerns about health care quality and cost are garnering heightened attention as the Obama administration implements the nation's sweeping health care overhaul.

"These findings raise concerns about what Medicare is paying for," the report said.

Investigators estimate that in one out of five stays, patients' health problems weren't addressed in the care plans, falling far short of government directives. For example, one home made no plans to monitor a patient's use of two anti-psychotic drugs and one depression medication, even though the drugs could have serious side effects.

In other cases, residents got therapy they didn't need, which the report said was in the nursing homes' financial interest because they would be reimbursed at a higher rate by Medicare.

In one example, a patient kept getting physical and occupational therapy even though the care plan said all the health goals had been met, the report said.

The Office of Inspector General's report was based on medical records from 190 patient visits to nursing homes in 42 states that lasted at least three weeks, which investigators said gave them a statistically valid sample of Medicare beneficiaries' experiences in skilled nursing facilities.

That sample represents about 1.1 million patient visits to nursing homes nationwide in 2009, the most recent year for which data was available, according to the review.

Overall, the review raises questions about whether the system is allowing homes to get paid for poor quality services that may be harming residents, investigators said, and recommended that the Centers for Medicare & Medicaid Services tie payments to homes' abilities to meet basic care requirements. The report also recommended that the agency strengthen its regulations and ramp up its oversight. The review did not name individual homes, nor did it estimate the number of patients who had been mistreated, but instead looked at the overall number of stays in which problems arose.

In response, the agency agreed that it should consider tying Medicare reimbursements to homes' provision of good care. CMS also said in written comments that it is reviewing its own regulations to improve enforcement at the homes.

"Medicare has made significant changes to the way we pay providers thanks to the health care law, to reward better quality care," Medicare spokesman Brian Cook said in a statement to AP. "We are taking steps to make sure these facilities have the resources to improve the quality of their care, and make sure Medicare is paying for the quality of care that beneficiaries are entitled to."

CMS hires state-level agencies to survey the homes and make sure they are complying with federal law, and can require correction plans, deny payment or end a contract with a home if major deficiencies come to light. The agency also said it would follow up on potential enforcement at the homes featured in the report.

Greg Crist, a Washington-based spokeswoman for the American Health Care Association, which represents the largest share of skilled nursing facilities nationwide, said overall nursing home operators are well regulated and follow federal guidelines but added that he could not fully comment on the report's conclusions without having had the chance to read it.

"Our members begin every treatment with the individual's personal health needs at the forefront. This is a hands-on process, involving doctors and even family members in an effort to enhance the health outcome of the patient," Crist said.

Virginia Fichera, who has relatives in two nursing homes in New York, said she would welcome a greater push for accountability at skilled nursing facilities.

"Once you're in a nursing home, if things don't go right, you're really a prisoner," said Fichera, a retired professor in Sterling, NY. "As a concerned relative, you just want to know the care is good, and if there are problems, why they are happening and when they'll be fixed."

Once residents are ready to go back home or transfer to another facility, federal law also requires that the homes write special plans to make sure patients are safely discharged.

Investigators found the homes didn't always do what was needed to ensure a smooth transition.

In nearly one-third of cases, facilities also did not provide enough information when the patient moved to another setting, the report found.

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On the Web:

http://1.usa.gov/VaztQm

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Follow Garance Burke on Twitter at —http://twitter.com/garanceburke.

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Colleges, theaters to create new Civil War plays

WASHINGTON (AP) — Four major universities are joining theater companies in Boston, Baltimore, Washington and Atlanta in a project to commission new plays, music and dance compositions about the Civil War and its lasting legacy 150 years later.

The National Civil War Project is being announced Thursday in Washington and will involve programming over the next two years to mark the 150th anniversary of the war between the North and the South. Beyond commissioning new works, organizers plan for university faculty to integrate the arts into their academic programs on campus.

Under the program, Harvard University will partner with the American Repertory Theater in Cambridge, Mass.; the University of Maryland's Clarice Smith Performing Arts Center will join CENTERSTAGE in Baltimore; George Washington University is working with Arena Stage in Washington, and Atlanta's Alliance Theatre will join Emory University.

Each collaboration will evoke unique perspectives on the Civil War in each region.

At Harvard, a new piece called "The Boston Abolitionists" about the abolitionist movement and the trial of a fugitive slave will be performed in May. Separately, Matthew Aucoin, an assistant conductor at the Metropolitan Opera, is using Walt Whitman's poetry about being a medic to develop a new opera.

In Atlanta, Alliance Theatre and Emory will develop a new theatrical production of U.S. Poet Laureate Natasha Trethewey's Pulitzer Prize-winning book "Native Guard," with a workshop planned for 2014. It recounts the story of a black Civil War regiment assigned to guard white Confederate soldiers on Ship Island off Mississippi's Gulf Coast.

Arena Stage Artistic Director Molly Smith, who helped guide the project, said this is a chance to reevaluate the Civil War and consider the issues that still resonate in American life.

"This is an anniversary of what is arguably one of the most important times in American history," she said. "And the same questions behind state rights and civil rights continue to infuse who we are as a country."

In September, the University of Maryland will host a national conference on civil rights and health disparities among minority populations to mark the 50th anniversary of the March on Washington.

Choreographer Liz Lerman, a 2002 MacArthur Foundation "genius" fellow, helped in developing the partnerships between theaters and universities during a semester spent at Harvard. She said artists can help professors animate their scholarship as more traditional lectures move online, and the Civil War is a good subject to connect art and academics.

"It's something about the fact that we're still trying to understand it," Lerman said. "There are enough civil wars still going on in the world, I myself am trying to understand what it must be like."

Lerman is developing a new dance theater piece in Washington called "Healing Wars" to explore the role of women and innovations in healing for amputees from the Civil War through the wars in Iraq and Afghanistan. Characters will migrate between past and present. The piece will feature actor Bill Pullman and eight dancers.

Harvard President Drew Gilpin Faust, a Civil War historian, has been leading the university to integrate the arts with academic pursuits, through theater, exhibits or other art forms.

"Engaging students through art and art-making is one of the ways in which universities prepare young women and men for life in a world that is far better connected and far more complex than at any other point in human history," she wrote in an email about the Civil War project.

At this anniversary of the war, she said it's important to remember how the values of freedom and equality were defined in President Abraham Lincoln's Gettysburg address as the war's purpose.

George Washington University President Steven Knapp said the Civil War transformed American history, culture and industry — even the concept of American democracy by redefining equality. Tackling such a subject between academia and theater could provide a new model for learning, he said.

"It's an experiment," Knapp said, "to see how far we can go in bringing together the strengths of the university and the strengths of the theater company."

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Follow Brett Zongker at https://twitter.com/DCArtBeat

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Groupon drops 24% on weak results, forecast

Groupon Inc., the Chicago-based daily deals website, offered up an earnings disappointment Wednesday after the market closed, and its stock price tumbled about 25 percent in after-hours trading.

The company posted a fourth-quarter net loss of $81.1 million, or 12 cents a share, missing consensus analyst estimates, which called for the company to earn 3 cents a share. Revenue for the quarter came in at $638 million, up 30 percent year-over-year and in line with estimates.

Lower margins associated with its Groupon Goods sales and higher marketing costs — taking a smaller cut from merchants to attract new business — were cited as factors contributing to the quarterly loss.

Andrew Mason, co-founder and chief executive of Groupon, pointed a finger overseas as the primary cause.

"It was continued volatility in our international business that drove the weaker-than-expected profitability in the quarter," Mason said during the earnings call Wednesday. "We still have much work to do to bring our international operations to the same level of those in North America."

The company lost $67.4 million for the year, or 10 cents a share, on revenue of $2.33 billion. Projections for first-quarter revenue between $560 million and $610 million fell below consensus estimates of $655 million. The disappointing earnings and tepid forecast sent Groupon's share price plunging from nearly $6 down to about $4.40 in after-hours trading.

Launched in 2008, Chicago-based Groupon created its own e-commerce niche with heavily discounted daily deals blasted out to subscribers via email. While targeting has become more sophisticated, growth has slowed and with it, investor enthusiasm.

The company has set out to reinvent itself, introducing search-driven deals stockpiled with ongoing offerings, and continuing to build out its own store, Groupon Goods, which sells everything from orthopedic pet beds to diamond tennis bracelets at a discount. Those initiatives have yet to make much of a dent on the bottom line.

Groupon shares hit an intraday low of $2.60 in November but rebounded after Tiger Global Management, a New York-based hedge fund, acquired a 10 percent stake in the company.

That same month, Groupon rolled out its local marketplace in Chicago and New York, a bank of thousands of ongoing deals that the company called an "evolutionary step" toward demand shopping. Customers who search online for everything from Mexican restaurants to Brazilian waxes will see relevant active deals offered by Groupon, hopefully pulling them to the site to fulfill their purchases.

While still a small part of Groupon's sales, it represents a big shift from its familiar push model, where daily deal emails fill inboxes with hit-or-miss offerings, to a pull dynamic where customers come to its sites in search of a variety of products and services.

Mason said Wednesday that the shift will ultimately pay dividends for Groupon and its investors.

"We just believe that the potential of a local marketplace business, where you can fulfill demand instead of shocking people into buy(ing) something they had no intention to buy when they woke up in the morning … it's just a much larger business opportunity," Mason said.

Analysts remain mixed about Groupon's prospects to evolve the business model beyond its core daily deals.

Edward Woo, senior research analyst at Ascendiant Capital Markets, has a "sell" rating and a $2.50 price target on the stock. He remains cautious because of slowing growth in the company's daily deals business, and he is not convinced that Groupon Goods, which accounted for $225 million in fourth-quarter revenue, is such a good idea.

"There's only a couple really big, successful e-commerce companies out there, Amazon being the biggest," Woo said Tuesday. "If you were to place your bets, do you really think that Groupon can take on Amazon? Most people would say no."

While not quite bullish, Evercore Partners analyst Ken Sena sees encouraging signs from Groupon's new searchable local marketplace and improving mobile engagement, upgrading the stock two weeks ago from "conviction sell" to "underweight," with a $5 price target, before the earnings report Wednesday.

"There are a couple of things we're encouraged by as we look at the overall story," Sena said Tuesday. "The fact that traction on mobile seems to be really strong, and growth within (their) local marketplace. I think that's an important overall business model evolution as the company moves from a push-based model to a pull-based model."

Arvind Bhatia, senior research analyst at Sterne Agee, recently upgraded Groupon to a "buy" with a $9 price target, citing the local marketplace initiative as a driver for long-term growth.

"Groupon has become synonymous with discounts," Bhatia said Tuesday. "The initial years were all about sending that email and letting you know there's a hot deal and it's going to expire soon. I don't think it's a bad thing to combine the push email with the pull."

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Kelly easily wins Democratic race to replace Jackson Jr.

Former state Rep. Robin Kelly easily won the special Democratic primary Tuesday night in the race to replace the disgraced Jesse Jackson Jr. in Congress, helped by millions of dollars in pro-gun control ads from New York Mayor Michael Bloomberg's political fund.

A snowstorm and lack of voter interest kept turnout low as Kelly had 52 percent to 25 percent for former U.S. Rep. Debbie Halvorson and 11 percent for Chicago 9th Ward Ald. Anthony Beale with 99 percent of precincts counted.

Kelly will formally take on the winner of the Republican primary in an April 9 special general election in the heavily Democratic district. In the GOP contest, less than 25 votes separated convicted felon Paul McKinley and businessman Eric Wallace.

Kelly framed her win as a victory for gun control forces.

"You sent a message that was heard around our state and across the nation," Kelly told supporters in a Matteson hotel ballroom. "A message that tells the NRA that their days of holding our country hostage are coming to an end.

"To every leader in the fight for gun control ready to work with President (Barack) Obama and Mayor (Rahm) Emanuel to stop this senseless violence, thank you for your leadership and thank you for your courage," she said.

Halvorson told supporters to rally around Kelly as the Democratic nominee. But Halvorson also made it clear she believed her biggest opponent was the mayor of New York, whose anti-gun super political action committee spent more than $2.2 million attacking her previous support from the National Rifle Association while backing Kelly.

"We all know how rough it was for me to have to run an election against someone who spent ($2.2) million against me," Halvorson said at Homewood restaurant. "Every 71/2 minutes there was a commercial."

Bloomberg's Independence USA PAC was the largest campaign interest in the race and dominated the Chicago broadcast TV airwaves compared to a marginal buy by one minor candidate.

Beale also called Bloomberg's influence "the biggest disservice in this race."

"If this is the future of the Democratic Party, then we are all in big trouble," Beale said.

Bloomberg, an Emanuel ally in the fight for tougher gun restrictions, called Kelly's win "an important victory for common sense leadership on gun violence" as well as sign that voters "are demanding change" in a Congress that has refused to enact tougher gun restrictions, fearing the influence of the NRA.

But as much as Bloomberg sought to portray the Kelly win as a victory over the influential NRA, the national organization stayed out of the contest completely while the state rifle association sent out one late mailer for Halvorson.

Be it the TV ads or a late consolidation toward Kelly in the campaign, the former Matteson lawmaker made an impressive showing with Democratic voters in suburban Cook County, where the bulk of the district's vote was located, as well as on the South Side.

Despite the size of the field, Kelly got more than half of the votes cast in the two most populated areas of the district. Halvorson won by large percentages over Kelly in Kankakee County and the district's portion of Will County, but those two areas have very few votes.

The special primary election, by its nature, already had been expected to be a low-turnout affair — an expedited contest with little time for contenders to raise money or mount a traditional campaign.

Adding to the lack of interest was the fact that there were no other contests on the ballot in Chicago and most of the suburban Cook County portion of the district. Few contests were being held in Kankakee County and the portion of Will County within the 2nd District.

Turnout was reported to be around 15 percent in the city and suburban Cook. More than 98 percent of the primary votes cast in Chicago were Democratic, as were 97 percent of those cast in suburban Cook.

On the Republican side, the unofficial vote leader was McKinley, 54, who was arrested 11 times from 2003 to 2007, mostly for protesting, with almost all of the charges dropped. In the 1970s and '80s, McKinley was convicted of six felony counts, serving nearly 20 years in prison for burglaries, armed robberies and aggravated battery. He previously declined to discuss the circumstances of those crimes but has dubbed himself the "ex-offender preventing the next offender" in his campaign.

Records show McKinley also owes $14,147 in federal taxes, which might explain his answer at a forum when asked if he would cut any federal programs. "Certainly," he said. "The IRS."

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Pentagon unveils plan to tap potential of mobile devices

WASHINGTON (Reuters) - The Pentagon unveiled a plan on Tuesday to ultimately enable the Defense Department's 600,000 users of smartphones, computer tablets and other mobile devices to rapidly share classified and protected data using the latest commercial technologies.

The system aims to quickly enable the latest technologies to be securely used by the military while remaining "device agnostic," said Major General Robert Wheeler, a Defense Department deputy chief information officer.

That sets the stage for an intensified struggle for Pentagon customers among BlackBerry devices, Apple's iPhones or iPads, and units using Google's Android platform.

The Defense Department currently has more than 600,000 mobile device users, including 470,000 with BlackBerries, 41,000 who have Apple operating systems, and 8,700 who use Android devices.

The new plan will result in the use of a much wider variety of mobile devices across the military. Currently most devices using Apple and Google platforms are in pilot or test programs, officials said.

Few commercial devices are used for classified communications, whereas the new system aims to bolster security of commercially available devices so they can be used for classified information, they said.

Wheeler said the implementation plan aimed to ensure that mobile devices, wireless infrastructure and mobile applications remain "reliable, secure and flexible enough to keep up with the fast-changing technologies of today."

He said the department has a broad range of mobile device users, from the chairman and planners on the Joint Chiefs of Staff to policymakers and soldiers on the battlefield, all of whom would be affected by the implementation plan.

The military services would decide which devices to buy and provide to users based on need. The system would not initially enable an individual service member to purchase their own mobile devices and use them on the Pentagon's networks, but that is a longer-range goal if security can be assured, officials said.

The plan is a step toward implementing the "mobility strategy" the Pentagon released last June. The strategy aims to use smartphone, tablet and other mobile technologies to improve information sharing and collaboration across the department.

The plan aims to "align the various mobile devices, pilots and initiatives across the department under common objectives to ensure the war fighter benefits from these activities," Teri Takai, the Pentagon's chief information officer, said in a statement.

"This is not simply about embracing the newest technology - it is about keeping the department's workforce relevant in an era when information accessibility and cybersecurity play a critical role in missions," she said.

As part of the implementation plan, the department has asked companies to submit proposals for creating a mobile device management platform and an applications store where users can get the programs they need for their devices.

The mobile device management platform would need a number of security features, such detecting malware and enabling officials to remotely delete data from the device, according to documents outlining the plan.

(Reporting by David Alexander; Editing by Eric Beech)

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